Nigeria’s electricity tariffs will increase in the coming months as part of efforts to make the power sector financially sustainable, a senior government official has said.
Olu Verheijen, special adviser to President Bola Tinubu on energy, made the announcement at the Africa Heads of State Energy Summit in Dar es Salaam, Tanzania, as reported by Bloomberg.
The Nigerian government had previously approved a threefold increase in electricity tariffs for Band A customers in April 2024. However, Verheijen said further price adjustments were needed, with tariffs expected to rise by about 66% for many consumers to reflect the true cost of electricity supply.
She emphasised that while higher tariffs are necessary to fund maintenance, improve reliability, and attract private investors, subsidies will still be provided for low-income households.
“One of the key challenges we’re looking to resolve over the next few months is transitioning to a cost-efficient but cost-reflective tariff, ” she said.
“This will ensure the sector generates enough revenue to attract private capital while also protecting the poor and vulnerable.”
Verheijen further highlighted the serious infrastructure challenges in Nigeria’s electricity sector, explaining that out of the country’s 14 gigawatts of installed power, only 8 gigawatts can be transmitted nationwide, and just 4 to 5 gigawatts reach homes and businesses.
She linked Nigeria’s energy ambitions to its economic goals, saying:
“Our ambition is to become a $1 trillion economy in five years and an upper-middle-income country in 25 years. Our energy policies must align with these goals.”
At the World Bank-backed conference, Nigeria presented a $32 billion plan to expand electricity access by 2030, Private investors are expected to contribute $15.5 billion. The remaining funding will come from public sources, including the World Bank and the African Development Bank (AfDB).